Highlands Bancorp, Inc. Announces Net Income and Earnings Per Share for the First Quarter Ended March 31, 2016
Highlands Bancorp, Inc. (OTCPink:HSBK), parent company of Highlands State Bank, announced first quarter net income of $386,000, an increase of 60.2% when compared to net income of $241,000 for the same period in 2015. Net income before taxes for the first quarter of 2016 increased $210,000 to $612,000 compared to $402,000 for the first quarter of 2015. First quarter net income available to common stockholders was $369,000 or $.21 per basic and $.20 per diluted share, compared to $224,000 or $.12 per basic and diluted share for the same period in 2015.
Net interest income increased by $271,000 to $2,791,000 for the first quarter of 2016, as compared to net interest income of $2,520,000 for the first quarter of 2015, as a result of growth in the loan portfolio. The net interest rate spread declined to 3.39% for the first quarter of 2016, as compared to 3.64% for the first quarter of 2015. Net interest margin also decreased to 3.67% for the first three months 2016 as compared to 3.86% for the same period of 2015. These decreases are the result of increased borrowing costs and higher rates paid on deposit promotions. The provision for loan losses increased by $17,000 to $180,000 for the first quarter of 2016 when compared to $163,000 for the same period of 2015 due loan portfolio growth and management's continued monitoring of non-performing loans. Charge-offs for the first quarter of 2016 were $282,000 compared to no charge-offs in the first quarter of 2015. There were no recoveries of previously charged off loans for the first quarter of 2016 or 2015. Non-interest income increased $449,000 to $968,000 for the first three months of 2016 from $519,000 for the comparable 2015 period due increased gains on sales of loans, debit card interchange, and loan fees. Non-interest expenses increased by $493,000 to $2,967,000 for the first quarter of 2016 compared to $2,474,000 for the same period of 2015 due to higher salaries and commissions, audit fees, and equipment costs, which were partially offset by lower data processing charges.
The Company's total assets were $320.6 million on March 31, 2016, an increase of $5.6 million or 1.8% when compared to total assets of $315.0 million at December 31, 2015. Deposits increased $1.0 million or .4% from $260.7 million on December 31, 2015 to $261.7 million on March 31, 2016. Net loans outstanding on March 31, 2016 were $292.1 million compared to $284.3 million on December 31, 2015, an increase of 2.7%. Non-accrual loans decreased $540 thousand to $1.5 million at March 31, 2016 when compared to December 31, 2015, and declined to .50% of total loans for March 31, 2016 from .70% of total loans at December 31, 2015.
The Company serves as the holding company for Highlands State Bank. Highlands State Bank is a full service community bank headquartered in Vernon, New Jersey with branch offices in Sparta, Totowa, and Denville, New Jersey. Highlands State Bank provides deposit and loan banking services to consumers and businesses in northern New Jersey. Secure Lending Solutions, Inc., a wholly owned subsidiary of Highlands State Bank, specializes in conventional 1-4 family mortgage loans.
This news release contains certain forward-looking statements, either expressed or implied, which are provided to assist the reader in understanding anticipated future financial performance. These statements involve certain risks, uncertainties, estimates and assumptions made by management, which are subject to factors beyond the company's control and could impede its ability to achieve these goals. These factors include general economic conditions, trends in interest rates, the ability of our borrowers to repay their loans, and results of regulatory exams, among other factors.
|Highlands Bancorp, Inc.|
|(Dollars in thousands, except per share data)|
|Three Months Ended|
|Net interest income||$||2,791||$||2,520|
|Provision for loan losses||180||163|
|Net income before income tax||612||402|
|Income tax expense||(226||)||(161||)|
|Preferred stock dividends and accretion||(17||)||(17||)|
|Net income available to|
|EARNINGS PER COMMON SHARE:|
|Net income available to|
|Weighted average common shares|
|SELECTED BALANCE SHEET DATA|
|AT END OF PERIOD||3/31/2016||12/31/2015|
|Allowance for loan losses||3,254||3,356|
|Loans held for sale||5,337||2,622|
|Intangible Assets Other Than Goodwill||175||175|
|Book value per common share||$||9.85||$||9.61|
|Tangible book value per common share||$||9.10||$||
|Loans past due 90 days and|
|Troubled debt restructurings (TDRs)|
|currently in compliance with new terms||716||490|
|Allowance for loan losses to total loans||1.10||%||1.17||%|
|Non-performing loans and performing TDRs|
|to total loans||0.87||%||0.87||%|
Highlands Bancorp, Inc.
Steven C. Ackmann, 973-764-3200